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Iron Ore Gets Its Groundhog Day Moment as Tumble Follows Surge

  • Prices post the biggest weekly loss since May after crackdown
  • Trump win had only ‘psychological impact,’ Kirchlechner says
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IRC Chairman: There's a Floor for Iron Ore at $60 a Ton

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Iron ore is having a Groundhog Day moment. Prices that were pumped up on speculative enthusiasm just capped the biggest weekly drop in six months, echoing a sharp rise and tumble seen in April and May that was driven by a surge and fade in trading in China, the largest buyer.

“The government again is reacting and trying to put some limits,” Philip Kirchlechner, director of Iron Ore Research Pty and former marketing head at Fortescue Metals Group Ltd., said by phone on Friday, referring to moves by China to rein in trading of raw materials futures, including iron ore. “You’re looking at this really speculative inflow of money.”